A new insurance survey found that Generation Y is looking for change when it comes to workplace benefits. Colonial Life & Accident Insurance Company released a new study to delve further into the preferences of Generation Y. “The ability to recruit and retain younger workers is quickly becoming essential for employers to ensure long-term business success, especially as Baby Boomers begin to retire in increasing numbers,” says Stephen Bygott, director of marketing programs and research at Colonial Life in a news release. “But Gen Y has different needs, expectations and preferences than previous generations, so companies need to take a different approach when it comes to designing and communicating their benefits packages. Those who don’t consider changes could risk losing their competitive edge and may be left behind.”

The insurance company is hoping that employers and human resource managers will take the findings into consideration. The survey shows that Gen Y is not as financially stable than other generations. Only 58% of them pay bills on time and 43% have high credit card debt. Almost three out of four aren’t saving up for emergencies. They also find that Gen Y is very mobile as the average 26-year-old has already had seven jobs. The study also finds that this generation values strong benefits packages provided by employers, but many are still underinsured. Sixty percent of Gen Y employees say benefits are the second most important aspect of job satisfaction. But other research shows they are the most likely to not take advantage of workplace insurance.

Another important piece of information to come out of this study is that Gen Y likes to receive information about benefits through personal communication. “Benefits communication emerged in the research as a clear opportunity for employers to more strongly engage Gen Y workers,” Bygott says. “These workers give employers low marks for the effectiveness of their benefits communication, and Gen Y women in particular are much more likely to say the communication they receive about their benefits is not at all informative, including cost, what’s covered and what they need.”

Hurricane season is here which means it’s a possibility that hurricanes and tropical storms could leave trails of destruction along coastlines. The Global Alert Network wants to help Gulf Coast residents with a tool that will provide them with real-time local weather, traffic and emergency updates that will help them prepare for these storms.

The free mobile app uses GPS to recognize the user’s location, sending breaking alerts to them instantly. The free app is already available in AppWorld and the Android Market. “Natural disasters, from hurricanes to tornadoes, have been particularly harsh throughout the country this year and the best way to mitigate the damage of these storms is to prepare. The free app gives users the peace of mind of knowing that if severe weather is headed toward them, they will automatically be alerted and can immediately take action,” said Scott Hughes, President of Global Alert Network. “Within minutes of downloading the GAN app, users have a free, potentially life saving tool at their fingertips. Especially during seasons with devastating weather and in the regions that often get hit, there is no reason why residents should not be downloading this application.”

Getting proper insurance is another way you can prepare for a natural disaster. But a recent Harris interactive poll found that only 56% of Americans say they’re prepared for a disaster. Two in five Americans say they’re not prepared for a long term power outage. Here are some regional concerns according to this recent poll:

• Easterners think that a snow and/or ice storm will be most likely to directly impact them (77%) and while Midwesterners are concerned about this as well (79%), an even greater number say they believe tornadoes will impact them (89%);
• Southerners are also concerned about tornadoes (66%) yet half say they are concerned about hurricanes (54%) or droughts (50%);
• Those in the West believe earthquakes will impact them (66%), which is a concern shared by very few in all other regions (between 7% and 16%);
• Although only 11% of Americans think a nuclear power plant disaster or meltdown will affect them directly, it is the only issue listed that most people say the federal government is worst equipped to handle (59%).  One third say the government is worst equipped to handle terrorism (34%), which is down from the 48% who said this in 2006; and,
• In 2006, shortly after Hurricane Katrina, half of Americans (50%) said that the federal government was worst equipped to handle hurricanes.  Five years later just 16% believe this.

A new study found that insurance claims submitted for damaged HVAC units were overpaid by 65%. That includes claims submitted during the first half of 2011. The study found that many insurance companies were paying for entire units to be replaced when minor repairs would have done the job just fine. “Our research found that the average claim submitted to insurance companies was the result of a homeowner being told by an HVAC company that their unit was in need of a full replacement, when in actuality, a minor repair would bring the system back to pre-loss condition,” stated Damon Stafford of HVAC Investigators, the company responsible for the study in a news release. “It becomes a self-fulfilling prophecy … homeowners experience an issue, contact a local HVAC contractor, and in turn unknowingly file a fraudulent claim. That’s in essence how the game has worked for the past 30 years.”

Insurance fraud is the second most costly white-collar crime after tax evasion. That’s according to the Insurance Information Institute. Insurance fraud totals more than $29 billion a year. The National Insurance Crime Bureau says that fraud causes insurance premiums to increase by nearly $300 every year per household. For many insurance companies, it’s cheaper to pay the claim than to hire professionals to seek the truth.

HVAC Investigators assists with investigating heating and air conditioning claims. They diagnose the damage and make a recommendation of whether replacement or repair is needed. “We’re excited about the positive impact we’re having on the insurance industry,” Stafford remarked in a news releaes. “We realized several years ago that the HVAC property claims were on a dangerous trajectory, and fraud was taking its toll. When carriers understand that they can save, on average, somewhere between $3,000 and $4,000 per claim, they begin to grasp that this is something they should be paying attention to. It’s important, and everyone we come into contact with ‘gets it.’ It’s very rewarding work.”

May turned out to be a mega-expensive month in terms of insurance losses. A busy week of severe thunderstorms and tornadoes across much of the US generated between $4 billion and $7 billion in insured losses, according to AIR Worldwide. AIR Worldwide is a catastrophe modeling company.

The rough month of May follows several months of unheard of losses that includes floods and cyclones in Australia, earthquakes in New Zealand and Japan, unrest in the Middle East, and of course, sky high tornado damage in the US. The unprecedented pattern of damage has left the insurance industry with little option but to raise rates.

According to the Chicago Tribune, experts say that 2011 losses for reinsurers are already more than double their full-year forecast. Two major tornado episodes ranked among the costliest in history. The insurance industry may be responding with higher prices. They’re also preparing for hurricane season which just started and could lead to even more destruction. The US did not have a major hurricane hit land the past two years but experts are predicting an active 2011 hurricane season.

Hurricane season has arrived and the National Oceanic and Atmospheric Administration is expecting three to six major hurricanes. The season officially started June 1 and experts say there’s a good chance of some big storms. “The United States was fortunate last year. Winds steered most of the season’s tropical storms and all hurricanes away from our coastlines,” Jane Lubchenco, Ph.D., NOAA administrator, said in a statement. “However we can’t count on luck to get us through this season. We need to be prepared, especially with this above-normal outlook.”

Now is the time for homeowners to reevaluate their coverage. According to the Insurance Information Institute (III) homeowners need more than standard home insurance. While wind damage may be covered, flood insurance probably isn’t. You’ll need to purchase that policy separately from the National Flood Insurance Plan. It’s also a good idea to review auto insurance policies. Most comprehensive policies do cover wind damage to autos, but you’ll need to review your coverage to make sure.

III says homeowners should take additional steps as well. These preparation moves include researching flood risk, updating your home inventories and making sure you and your family have an evacuation plan just in case a major storm does blow your way this hurricane season.

Home and auto insurance company Allstate is buying Esurance as well as Answer Financial for about $1 billion. Allstate told USA TODAY that the purchase will give customers more options among insurance carriers. Esurance sells auto insurance online and through call centers while Answer Financial is an independent personal insurance agency, according to USA TODAY.

Esurance sells auto insurance directly to customers online and through call centers. Answer Financial is an independent personal insurance agency. “Consumers today expect to have their specific needs met by their insurance companies. Our strategy is to focus on individual preferences and utilize different value propositions for distinct consumer segments,” Allstate President, Chairman and CEO Thomas J. Wilson said in a news release.

Esurance is the third-largest provider of online auto insurance quotes. It also has a 24/7 call center and is the third most recognized brand for online auto insurance sales. “Our Allstate agencies do an outstanding job of serving customers who want a local personal touch and prefer to purchase a branded product. Esurance will expand our ability to service customers that are more self-directed but still prefer a branded product,” says Wilson.

There’s at least a little bit of good news for the homeowners and residents facing flooding along the Mississippi River. According to Insurance Journal, a House committee approved legislation that would extend the federal flood insurance program for five years. It also includes a plan for financial reform. This legislation would mean the National Flood Insurance Program will be around until 2016 and includes a plan to increase premiums, improve flood maps and receive more public input.

The program is set to expire this fall and has been extended on a short term basis several times. It is currently in more than $17 billion in debt. “Flood waters across the South and Midwest are on the rise, and so is the debt owed by this program,” Rep. Judy Biggert, R-Ill, told Insurance Journal.  “We need to put the National Flood Insurance Program back on stable financial footing so that it can provide homeowners with reliable coverage without putting taxpayers on the line for billions in losses.  This legislation will give the program long-term stability, help draw better flood maps, and initiate actuarially sound pricing.”

While two new option coverage options were rejected, many people supported the move to extend the program. “A five year extension is of the utmost importance, as are reforms to put the program on sound financial footing,” Charles Symington, Big “I” senior vice president of government affairs, told Insurance Journal. “We are especially grateful that the Committee rejected an amendment that would have removed the inclusion of optional business interruption and additional living expenses coverage as these provisions will better safeguard consumers against flood loss.”

Now the program will move to the full House and Senate for a vote. Sponsors are hopeful that it will be passed before the end of September when the current program expires. “Given the current flooding taking place on the Mississippi river, it is especially critical to get a long-term extension of the program in place so that this debate can move beyond Congress and residents in flood-prone areas can have the stability in the program they so desperately need to insure their homes and businesses,” Leigh Ann Pusey, president and CEO of the American Insurance Association, told Insurance Journal.

The Federal Emergency Management Agency issued a warning to residents of Louisiana to prepare for flooding and keep flood insurance documents safe. FEMA is encouraging residents to follow the direction released by local officials in terms of evacuations.
“Last Friday, May 6, 2011, President Obama issued an emergency declaration specific to 22 parishes throughout Louisiana,” said Federal Coordinating Officer Gerry Stolar in a news release. “That equates to one-third of the communities throughout this state currently at risk for potential flooding. FEMA is asking Louisiana residents living in the declared parishes to take measures now to best protect their lives and properties, including knowing the facts about flooding and safeguarding important documents, such as insurance policies.”

Strong tornadoes lumbered through Missouri last week, doing millions in damage to Lambert-St. Louis International Airport and other structures. The airport received a $10 million insurance check to cover the costs of the damages from the storms. Airport officials say they’re still finalizing estimates for repairs, but $10 million is a good start. “They know it will be quite a bit when all is said and done,” Susan Kopinski, Lambert’s deputy director of finance and administration told the Post Dispatch.

The $10 million check shows just how extensive the storm was, but airport officials say they’re adequately insured for situations like this. The airport’s deductible is $100,000 and officials believed all of the damage would be covered, according to the newspaper. Flights were disrupted for a full day following the storm so the airport rushed to bring in contractors to make necessary repairs. Officials say the worst of the damage occurred in the C Concourse in Terminal 1. Several windows were blown out and a jet fuel tank farm was damaged.

The airport was just one of many buildings damaged. In fact Nationwide Mutual Insurance Co and Allied Insurance set up a temporary aid station to distribute humanitarian aid to victims. “Our hearts go out to victims of this terrible storm,” said Terrance Williams, regional vice president of Nationwide’s Central Plains Region. “We’re pleased to assist the community with humanitarian relief and would encourage anyone who needs emergency supplies to visit our mobile catastrophe unit. We’re also committed to providing timely service to Nationwide and Allied Insurance customers who may have experienced damage to their homes.”

Tornadoes in the Carolinas and fires in Texas are making for a busy time for insurance companies. In Texas, Nationwide Mutual Insurance Co and Allied Insurance have representatives and agents ready to assist customers with damage claims due to wildfires or hailstorms that have recently impacted the state.

According to the companies, the Nationwide claims hotline is 1.800.421.3535. That number will help policyholders reach their local agent. Allied Insurance customers are asked to call the Allied claims hotline at 1.800.282.1446. “Right now our claims numbers are moderate, but we expect them to increase as customers have an opportunity to assess the damage caused by the wildfires burning in the Dallas/Fort Worth area as well as the recent severe hailstorms,” said Terrance Williams, regional vice president of Nationwide’s Central Plains Region, in a news release. “We’ve taken steps to ensure a quick response to customers who report claims from these events.”

In the south where tornadoes ripped through last Saturday, adjusters have descended on the area to collect claims. As of Wednesday morning State Farm Mutual Automobile Insurance Co had received about 400 claims from Virginia homeowners and 2300 in North Carolina, according to The Virginia Pilot. A State Farm spokesman told the newspaper that most of the Virgina claims had come from Gloucester County where a storm stripped an 8 1/2 mile path of homes and businesses. “We do expect both of those numbers to increase as people get power and get themselves collected,” spokeswoman Amy Preddy told the newspaper. “Most of them are homeowners claims due to wind damage, falling trees. But we have seen some auto claims resulting from hail damage.”

A new report from the National Insurance Crime Bureau, NICB, shows a big jump in questionable claims in New York. With 145 questionable claims, the city of Buffalo came in second behind New York City which had 4,016 questionable claims. New York City held57% of the statewide total of questionable claims. In all, 7,026 questionable claims were filed across the state of New York in 2010. That’s up from 6,378 in 2008.

So how does an insurance claim become “questionable?” Authorities say there are seven reasons, but most are because they were “faked/exaggerated injury”. Other reasons include “excessive treatment” and “staged/caused accident.” According to reports, most of the questionable claims come from automobile insurance policies. In fact 83% of questionable claims in 201 involved auto insurance.

Allstate responded to the report. Krista Conte, New York spokesperson for Allstate said, “We commend the NICB on their efforts to fight fraud and raise awareness about this issue, which is extremely important to all New Yorkers. Not only is no-fault fraud, or auto accident fraud, costing New York consumers and insurers hundreds of millions of dollars, it puts drivers at risk. Those who would commit this type of crime are taking advantage of the broken no-fault system and are organized, calculating and part of a big business. They are gaming the auto insurance system and the victims are honest, hard working New Yorkers.”

The private insurance industry won’t take as much of an impact from Japan’s earthquake, tsunami and nuclear disaster as it did for Hurricane Katrina nearly six years ago, even though this recent natural disaster is expected to be much costlier. According to a report from MSNBC, the reason it won’t be as bad for the insurance sector is because Japanese homeowners and businesses depend largely on government-based insurance for these types of natural disasters.

Statistics from the Reinsurance Association of America show that only 14 to 17 percent of Japanese homeowners carry private earthquake insurance. In Japan there is also a cap on the total claims paid out during a disaster. If claims surpass $60 billion, homeowners only receive partial coverage for their losses.

Some are estimating the losses from the natural disasters to top $180 billion, others say even more. Hurricane Katrina once held the top spot for costliest disaster, coming in at $125 billion. Experts are still trying to estimate Japan’s damage. “It’s still early in the aftermath; we have been running hundreds of computer simulations taking all the geophysical data and simulating the ground motion and estimating damage based on this simulation,” Jayanta Guin, head of research and modeling for AIR told MSNBC. “We’re working through the details to see if we can refine it.”

What’s still unknown is what kind of impact the nuclear plant will have on the area. But due to the Japanese Nuclear Act of 1961, the plan operators won’t be responsible for any of the costs. “Those disasters are typically excluded from property and casualty policies,” he said. MSNBC says it’s likely that people worldwide could feel the impacts of these disasters in the form of higher insurance premiums to make up for what will likely be the most expensive event in history.

More than one-third of complaints taken in by the National Association of Insurance Commissioners or NAIC deal with auto insurance, according to a report by the San Francisco Chronicle. Data collected over the past three years shows that accident and health coverage gets the most complaints and makes up about 40 percent of the total number of grievances.

If you’ve got an issue, it’s a good idea to take it to the top. According to California Insurance Commissioner Dave Jones, the California Department of Insurance has recovered $63.8 million in 2010 for consumers who complained about conduct of insurance companies. “Our goal at the Department of Insurance is to be the best consumer protection agency in the nation,” Commissioner Jones said in a news release. “I’m proud to announce that our hard work has led to us recovering more than $63 million for consumers for calendar year 2010. Through our consumer complaint services and our market conduct exams, we will continue to be responsive to the needs of consumers and proactive in looking for any and all activities that hurt policyholders.”

In California, complaints come in through calls to the hotline. Typically there are 200,000 annual calls in to the (800) 927-HELP line. The Claims Services and Rating and Underwriting Services bureaus are the ones who investigate and resolve claims for consumers. The Consumer Services Division recovered close to $90 million in 2009. About one-fifth of that came from resolving issues with the wildfires of 2007 and 2008. Officials say resolving those types of claims can take more than a year because of the complexity of the issues.

According to the San Francisco Chronicle, regulators are necessary for acting as a mediator between the insurance providers and the policyholders. Consumers who feel that they aren’t being treated properly or haven’t received adequate coverage can report their complaints to their state regulation departments as a way to try for recourse. Some of the biggest sources of complaints are settlement disputes, claims denials and rating issues. Consumers also complain when settlement sizes are too low or there were delays with service.

A technology pioneer offering weather insurance to millions of people just received $42 million in funding from investors including Khosla and Google. “With a firm belief that technology can create new markets and address vital global challenges, Khosla Ventures immediately recognized the potential of WeatherBill to fundamentally change the risk profile of the global agriculture industry,” said Vinod Khosla, founder of Khosla Ventures in a news release. “WeatherBill is one of those rare companies that has the leadership and vision to apply new technology to an ancient and daunting problem – weather’s impact on agriculture. Now WeatherBill can help farmers globally deal with the increasingly extreme weather brought on by climate change.”

According to WeatherBill’s CEO and co-founder David Friedberg global agriculture production is a $3 trillion a year industry and faces lots of risks from weather. Droughts in Russia and China and flooding in Australia have proven the need for this product he says. “More than 90 percent of crop losses are due to unexpected weather and climate change is increasing the frequency of extreme weather events,” says Friedberg. “Dedicated to addressing this global concern, WeatherBill is applying the use of our technology platform  to become the first company to provide every farmer – from the developing world to the technologically sophisticated – with a simple and effective solution for removing weather-related risk from their financial profile, in order to support and ensure the sustainability of the global food supply.”

WeatherBill uses unique technology and extensive weather data to run large-scale weather simulations. That way they can sell personalized weather insurance products to people like Ohio soybean farmer Steve Wolters. “Nine years ago we had a very dry growing season in rural Ohio. A year later we experienced 14 inches of rain in 10 days.  The flip flop of weather from one year to the next is the biggest challenge farmers face,” Wolters said in a news release. “It makes sense to me to take advantage of WeatherBill’s automated weather insurance programs that pinpoint the weather conditions expected to affect my land and pay me if they happen.  Protecting my seasonal profits with this product, before I even plant a seed, greatly reduces the risk I take every year and allows me to invest in improving my growing operation.”

Homeowners with an FHA loan will have to fork over about $30 more a month according to federal officials. That’s because the annual mortgage insurance premium, which is broken into monthly payments will increase by one-fourth of a percent. The increase begins on April 18 on new loans, according to reports.

FHA or Federal Housing Administration loans are the most popular type of mortgages. The increase will vary depending on the amount of the loan and the term of the mortgage, but experts estimate the average impact to be about $30 a month. The reason for the increase is to boost capital reserves for the FHA which are currently below the set minimum due to the increase in foreclosures and defaulted loans. Last year the reserves were supposed to be at $18.5 billion, but in reality were only at $4.4 billion, according to a spokesperson for the FHA.

With the monthly increase the agency expects to add an extra $3 billion to its reserves each year. “After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” FHA Commissioner David Stevens told reporters. “This quarter point increase in the annual MIP is a responsible step toward meeting the congressionally-mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”

Devastating floods destroyed homes and lives in Australia recently. But the bad news continues to flow in as officials say about half of the homeowners impact by the flooding in the eastern part of the country did not have insurance. According to the Herald Sun, the homeowners did not have riverine flood insurance and they may not have known that they wouldn’t be covered.

That’s why the country’s Assistant Treasurer Bill Shorten is pushing for easier-to-understand language in insurance policies. “There are a lot of views from consumers groups who are frustrated that home and content policies are hieroglyphic,” Shorten said according to the Herald Sun. He said many people don’t read their policies. “That does not make people silly … it just means the format they are submitted in is a highly inaccessible format.”

The government will assist uninsured homeowners, but Shorten wants to make sure homeowners can help themselves in the future. “It is important however the insurance industry makes it as easy as possible for people to know what they have got,” he told the Herald Sun. Even though about half of homeowners weren’t properly insured, officials say they were better prepared than many of the small businesses that were impacted by the flooding.

Faulty drywall is causing some Florida homeowners to lose their insurance coverage. According to UPI.com, Citizens Property Insurance announced it won’t cover homes that have extensive damage caused by sub-par Chinese drywall. According to reports, the drywall smells bad, corrodes metal and causes other issues.

Citizens Property Insurance, a government entity and non-profit, already dropped coverage on two homes that were vacant. UPI.com says that 58 homes have filed claims for having the bad drywall over the last year and a half according to the insurance company’s spokeswoman Christine Ashburn. Several other insurance companies have denied coverage for similar issues with drywall.

Ashburn says that it’s the company’s policy to never cover existing damage. “If a home has existing damage, we will not provide coverage for the property unless the damage is repaired, or we are provided with proof of intent to repair the property,” Ashburn told UPI.com. The company’s move to pull coverage from some homeowners experiencing drywall problems is prompting questions from lawmakers. “I am concerned about the effect of Citizens’ nonrenewal or cancellation decision on the tens of thousands of Floridians suffering through the nightmare of tainted drywall, especially those who are unable to find affordable coverage in the voluntary insurance market,” Sen. Bill Nelson wrote according to the Sun Sentinel.

Two-thirds of renters don’t have renters insurance. But if there’s a fire, a robbery or a burst pipe it may be the only way you’ll recoup what you lose. And for those worried about the cost of paying for renter’s insurance, it’s important to keep in mind that policies often cover more than just what’s inside your home at the time of loss. For instance, according to the Detroit News, if your laptop is stolen out of your car, the computer may be covered under your policy. Or if a broken pipe damages your neighbor’s ceiling below those repairs could also be covered.

Rose Lichter-March, 28, learned the hard way that renter’s insurance is more of a necessity than a bonus. A fire in another apartment left her stuff smelling like smoke and cleaning cost her thousands. “They would have put me up in a hotel, paid for my cleaning and moving fees and even the broker’s fee for a new place,” Lichter-Marck told the Detroit News.

So just how much can you expect to pay for a policy? About the cost of one large pizza a month say experts. Most people don’t think their belongings are worth insuring, but experts say that’s not true. “If something were to happen, it’s going to cost a lot more than people imagine to replace dishes, computers, a big-screen TV, clothing,” Ben Rabinowitz, an agent with Allstate Insurance Co. in Pikesville, Md., told the Detroit News. “It begins to really add up.”

According to the US Fire Administration, residential fires are more common during the winter months than any other time of year. That’s because there is an increase in cooking and heating fires. Plus many people turn to space heaters to save money which lead to fires if used improperly. According to a news release from RenterInsurance.net, typically 16 causes of destruction are covered by rental insurance including:

• Fire or Lightning
• Windstorm or hail
• Explosion
• Riot or Civil Commotion
• Aircraft damages
• Vehicle damages
• Smoke
• Vandalism
• Malicious mischief
• Theft
• Volcanic eruption
• Falling objects
• Weight of ice or snow or sleet

Florida homeowners have a lot to worry about: the threat of hurricanes, low home values and huge insurance costs. According to the Herald-Tribune, Florida ranks as one of the most expensive places in the world to insure a  home. According to reports, in Monroe County, Florida rates have come in as high as $13,000 a year to insure a $150,000 home. That means insurance will cost more than the mortgage itself. Experts say insurance rates have doubled and even tripled in the last five years in other counties. “How much longer will I be able to afford to live here?” Scott Snyder, a Sarasota homeowner, said to a reporter. Snyder says  since 2003 he has bounced between four insurers and watched his premium nearly double from $1,350 to $2,644.

The Herald-Tribune says homeowners are paying more for less. Things like pool cages and sinkhole coverage was once included but now is not and officials say it’s partly because tired homeowners have stopped complaining. “People have accepted, sadly, the premiums they are now paying and are not yelling and screaming as they were in the past,” Sen. Mike Fasano, a New Port Richey Republican, told the  newspaper. “But that doesn’t mean we don’t have a crisis right now.”

Many large insurance providers have left the state, prompting the arrival of smaller start-up insurance companies. While the new companies are providing a service, it’s coming at a bigger cost to homeowners. According to the Associated Press, 2011 will be no different. More than 4 million Florida homeowners will see rate hikes that were recently approved by state regulators to the tune of $718 million, despite the fact that no hurricanes have hit the state in five years.

Spokeswoman for New York-based Insurance information Institute, Lynne McChristian, offered up three reasons for increased insurance rates in some parts of Florida. The first is that there have been an increase in new claims from Hurricane Wilma. In Florida, policyholders have up to five years to file a claim and since the fifth anniversary of Hurricane Wilma just passed more homeowners were filing claims. McChristian says there are also more sinkhole reports which is forcing higher payouts from insurance companies. Finally she told TCPalm.com that some insurance companies are responding to changes in hurricane mitigation discounts by increasing rates. “Our state is exposed to more catastrophic loss than any other state,” McChristian told TCPalm.com. “Our population has grown and the building boom of the past few years put more people and more property in areas of the state that are most vulnerable to hurricane damage and storm surge. A single major catastrophe in Florida can bring losses as high as $100 billion and the insurance industry has to prepare for that.”

The first Sunday in November marks the time to set your clocks back. It also marks the onset of darker evenings. Home insurance experts say it’s a time when burglars can increasingly target properties this time of year. They have more dark hours which gives them a great opportunity to strike, according to Halifax Home Insurance. The insurance provider says last year they recorded a 63 percent increase in burglary claims during winter months compared to summer months. “Year on year we typically see far more burglaries occurring during the winter,” said Halifax Home Insurance Senior Claims Manager Martyn Foulds in a news release. ” Burglars will tend to go for the path of least resistance and look for homes that lack even the basic security measures, so a few simple cost effective steps can go a long way to avoiding a break in.”

Some tips to help you make it through the winter without welcoming in a burglar include:

* Keeping valuables away from windows and doors where a crook can easily spot them.

* Mark property with an inscription or ultra violet pen.

* Photograph your personal items and keep track of receipts and serial numbers.

* Invest in a small safe to keep unused credit cards, personal documents and small valuables like jewelry.

* Make sure all doors and windows are locked.

* Even though it’s convenient, don’t hide a spare key outside of your property.

* Consider installing an alarm.

* Trim bushes near windows to give burglars fewer hiding places.

Not only is it a good idea to revisit your home insurance policy for theft reasons, WVNS says it’s also a time to reevaluate your coverage overall. Insurance agents advise assessing the true value of your home. That way if bad weather, flooding or snow hits you’ll be covered. “When a loss happens we have insurance to pay for the damage, but there’s a lot of hidden costs that you’re not compensated for; in that you don’t have insurance coverage to pay for you to shop around for a new refrigerator and a new roof, or a contractor to repair the damage,” Jim Songer, President of Songer Insurance told WVNS.

According to an annual survey by J.D. Power and Associates, satisfaction with homeowners insurance companies fell to the lowest level in five years. Tabulated scores came in at an average of 750 on a 1,000-point scale, a 23-point drop compared to 2009 ratings. The US National Homeowners Insurance Study surveys people on policy offerings, price, payment and claims and billing.

The company that came out on top according to those surveyed was Amica Mutual. The company has filled the number one spot for nine consecutive years. Coming in behind Amica are Auto-Owners Insurance, Erie Insurance, and Cincinnati Insurance. “Homeowners insurance policyholders are already price sensitive due to the economy,” Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates, said in a statement. “Approximately 50% of customers don’t have a clear understanding of how much coverage or what type of coverage they have on their home, and many have erroneously expected their premiums to decrease just as home values have declined since 2008. As a result, many customers believe their policies are not aligned with their property values and express dissatisfaction.”

If you’re looking for ways to be more satisfied with your insurance policy, study officials say to bundle home and auto insurance policies because those surveyed were more satisfied with that scenario.

Here’s a reason to throw away your dead flowers. State Far Insurance Co. ruled that dead flowers in a plastic flower pot spontaneously combusted, sparking a house fire that did $20,000 in damages to a northeast Arkansas home, according to the Associated Press. “The fire was caused by self-heating through decomposition of organic materials contained within a plastic flowerpot,” the Aug. 25 letter from State Farm Insurance Co. to the owner said.

The homeowner Brian Duncan said the flowerpot was holding dead, decomposing flowers and potting soil that his wife planted over a year ago. “She had intended on repotting (the flowers),” Duncan told the Associated Press. But instead they sat on the porch, drying out and dying. Duncan said it was obvious that the fire started in the flower pot because there was a charred hole on the porch and the remnants had fallen to the ground several feet below. But the homeowner told the Associated Press he was still surprised when the results showed the fire started due to spontaneous combustion.

No one was hurt in the late-August blaze, but considerable damage was done to the home. Duncan’s father-in-law used a garden hose to squelch the flames before firefighters showed up to the scene. Duncan said some of the damages included ruined decking, burned vinyl siding, a broken window and damage to the air conditioning system. “The house was full of smoke,” he told the Associated Press.

A local fire marshal maintains that spontaneous combustion is very rare. “Spontaneous combustion is something where you have to have a lot of variables come together and it has to be just right,” Jason Wills told Jonesboro television station KAIT. “It’s something that does happen, but this is the first one in our area that I’m aware of.”

Iowa officials say recent flooding proves that all Iowans should consider buying flood insurance. “Earlier in the year the lieutenant governor and I were in Clarion to look at flood damage there and the important part that stood out about Clarion is there was not a river nearby,” David Miller, administrator to the Iowa Homeland Security and Emergency Management division, told Radio Iowa. “It wasn’t river flooding. It was flash flooding and runoff.” Miller told all Iowans– regardless of whether they live near a river or not– that they need to be concerned with possible flooding. “What we’re seeing is almost anybody can be affected by flooding and it’s why we’ve been really promoting involvement and joining in the National Flood Insurance Program,” he told Radio Iowa.

Recent flooding has struck the city of Ames severely. Two rivers meet there, but other cities and towns experiencing flooding aren’t near bodies of water. Governor Culver told Radio Iowa the “new normal” in the state appears to be “unprecedented” flooding. “In Ames, this is worse than ’93 and so anything that we can do in terms of flood mitigation, flood prevention — we need to make that a priority here at the capitol,” Culver told Radio Iowa.

Local insurance agents say most of their clients don’t carry flood insurance. State Farm Insurance Agent Pat Brown told the Ames Tribune that her customers only carry it if federal law requires them to. “If water seeps through basement walls or breaks the basement windows, that’s flood damage, and it’s hard for people to get their arms around that,” Brown said. Officials with the Iowa Insurance Division told the Ames Tribune that most homeowners’ policies don’t cover flood damage. “We remind people annually that one out of every four ‘flood events,’ as we call them, happens outside flood plains,” Tom Alger of the Iowa Insurance Division told the Ames Tribune.

A 2008 wind storm is still causing problems for Ohio homeowners. This time instead of downed trees and ripped off roofs, homeowners are having to deal with higher homeowners’ insurance rates. According to the Ohio Department of Insurance, rates increased by an average of 9.7 percent. The Ohio Department of Insurance surveyed the top ten providers of homeowners’ insurance, according to the Dayton Business Journal.

The increase comes on the heels of a seven percent increase in 2008, which at the time was the largest jump in five years, according to reports. Insurance companies say they paid out more than $1.4 billion in 2008 as a result of the September wind storm that left millions without power for days. The storm was what was left of Hurricane Ike, wiping out power to 1.9 million electricity customers in the Dayton area.

In addition to increased homeowners’ insurance rates, Ohio residents will also see a 2.8 percent increase in auto insurance rates. But despite the increases, reports show that Ohio is still the sixth lowest in the country for homeowner’s insurance rates and the 11th lowest for auto insurance rates.

The U.S. House of Representatives is moving closer to approving a bill that would extend the flood insurance program for five years. Called the Flood Insurance Reform Priorities Act of 2010, the bill has the support of both the Independent Insurance Agents and Brokers of America (The Big “I”) and the National Association of Professional Insurance Agents (PIA National) according to the Insurance Journal.

Once passed by the House, the Senate will need to pass the bill as well. Insurers are hoping lawmakers take out a portion of the bill that removes anti-concurrent clauses from flood policies. “The recent series of expirations and temporary extensions is negatively impacting the market,” Robert Rusbuldt, Big “I” president and CEO, told the Insurance Journal. “The Big ‘I’ commends the House for passing this bill which is a step in the right direction to a long-term extension of the NFIP [National Flood Insurance Program] and includes much-needed reforms to the critical program.”

The NFIP is currently set to expire at the end of September once again. In the past, lawmakers have extended the program five years at a time which provides stability to the insurance marketplace. Although in the past year, Congress has begun extending the program for smaller periods like a month or six months, which has made it difficult for homeowners and those in the insurance industry. “This bill contains many provisions that PIA has consistently advocated,” PIA National Director of Federal Affairs Mike Becker told House Speaker Nancy Pelosi and Minority Leader John Boehner according to the Insurance Journal. “Perhaps most significantly, H.R. 5114 extends the flood insurance program through the end of 2015. This would finally end the uncertainty that has resulted from a series of short-term NFIP reauthorizations.”

The Michigan Supreme Court supported the practice of using credit scores to set auto and home insurance rates of policyholders. Some say that using credit history discriminates against poor and middle-class people. But those in the insurance industry says it makes sense because credit scores are often indicative of whether a person will file claims. Michigan’s high court voted 4-3 in a case that questioned whether the state’s insurance examiner exceeded her authority in 2005 by trying to ban the credit-based scoring, according to the Detroit Free Press. “We’re very pleased with the ruling,” Peter Kuhnmuench of the Insurance Institute of Michigan told the Detroit Free Press. “The evidence was overwhelming.”

Those against the policy are now trying to get the legislature to ban it. The state House did approve the ban, but early predictions show a different outcome is likely in the Senate. Kuhnmuench told reporters that approving the ban would actually cause rates to increase for two-third of insurance policyholders. On the contrary, a state insurance consumer advocate claims the ban would cut rates for nearly three out of four insurance customers.

Chief Justice Maura Corrigan voted in favor, saying that insurance companies “have demonstrated a clear correlation between insurance scores and risk of loss,” justifying the use of credit scores. Chief Justice Marilyn Kelly who was against eliminating the ban said that the evidence supporting the connection between credit scores and insurance risk was not conclusive or complete.

For customers who mailed insurance payments to Florida’s Citizens Property Insurance last month, the company may not have received them. According to reports, a week’s worth of mail may never have reached the the state-backed property insurer. But despite the claim that some mail may not have made it, the US Postal Service as well as some customers aren’t so sure.

The USPS originally said that someone had completed a change of address form fraudulently, claiming they were with Florida Citizen’s Property Insurance. Another fraudulent claim was submitted via the Internet. Initially the post office thought some mail had been forwarded due to the illegal claim, but now they say that never happened. That’s because by July 1 the insurance company had responded to the USPS when prompted to confirm the change. Citizens did not confirm the change so the request was denied. “There is no evidence at this time to suggest that any mail was forwarded,” according to the USPS and ClaimsJournal.com.

But a spokesperson for Florida Citizen’s Property Insurance says the company received less mail than they normally would during the time period in question, June 14-28. That’s why the company is asking customers to make sure their checks were received and processed. “The systems designed to protect U.S. Postal Service customers did their job. Reporting throughout the state has claimed that as many as 1 million policy holders could have been affected. This is simply NOT true,” responded USPS Communications Director Joseph Breckenridge to ClaimsJournal.com, after media reports raised the prospect of lots of diverted mail. “In fact, there is no evidence whatever to suggest that this fraudulent change of address order caused any mail whatever to be forwarded. ”

The fraudulently filed forwarding address turned out to be an apartment complex and officials say the address did not receive any mail intended for the insurance company. “The quantity of mail received by a major firm like Citizens is very great. We’re talking about thousands upon thousands of pieces of mail every day. The operations of firms like Citizens are on such a scale that such an irregularity would be immediately obvious,” Breckenridge told CJ.

Clean up efforts continue in Nashville after record rainfall destroyed homes and created an estimated billion dollars in damage.Many residents are now waiting on word from FEMA, the Federal Emergency Management Agency, to find out what aid they’ll receive. USA Today interviewed some of the homeowners living in the worst-hit areas near the Harpeth River.

Twenty-seven-year-old Tiffany Wiggers says she doesn’t have flood insurance and, in fact, she paid $15,000 extra to be closer to the river. “Everybody on this side of the street, we paid lot premiums to be near the river: $15,000. You have to laugh to keep from crying,” Wiggers told USA Today. She says she and her  husband questioned the real estate agent, builder, lender and an insurance agent about flood insurance, but all said it wasn’t necessary. “They all said, ‘You’re not in a flood plain, so you don’t need it,’ ” recalled Wiggers for USA Today, who was taken from her home via rescue boat. “I was like, ‘FEMA and the bank said we won’t need it, so we’re in the clear.’ ”

In this area the Harpeth River, usually a gentle stream, rose to 27.3 feet. That’s three feet higher than the record which was set in 1948. Tennessee’s governor Phil Bredesen told CNN that many people don’t have flood insurance. “A lot of people who didn’t have flood insurance, because they never thought floodwaters would ever come anywhere near their home, are really looking at a total loss of their home,” Bredesen said to CNN. “It’s very tough on a lot of people right now.” President Obama has declared ten Tennessee counties disaster areas. Thankfully the forecast for this area is dry.

A congressional committee approved a bill that would overhaul the National Flood Insurance Program. This move impacts more than five million homes and businesses that are sitting in flood-prone areas, according to a Reuters report. The program had recently expired, causing issues for anyone wanting to sell or buy property in a flood zone.  Here’s a look at the changes that would happen if it is approved by the House and Senate:

• It would continue the program for five years until September 30, 2015.
• New rate maps for flood zones would be delayed. This would help homeowners facing higher insurance rates.
• The bill would also overhaul the program’s administrators so it can function more efficiently.

Democrat Maxine Waters chairs the subcommittee working on this issue and says they have figured out cost-saving methods which is important since the program has carried massive debt since the destructive 2004 and 2005 hurricane seasons. “The focus on NFIP should be on providing coverage for those vulnerable to natural disasters, not to subsidize the wealthiest Americans, so we are phasing out premium subsidies for second homes and vacation homes, which will save the program a lot of money,” Waters said in a statement according to Reuters. The House of Representatives Financial Services Committee approved the bill.

Insurance providers including Allstate, Travelers, Hartford Financial Services and Fidelity National Financial all have a big involvement in the National Flood Insurance Program. The program is administered by FEMA to provide flood coverage. They buy the coverage from about 90 companies that sell policies and collect premiums for the government. Those premiums are given to FEMA. “A long-term reauthorization of the NFIP is extremely important, especially for Americans living in flood-prone areas,” Blain Rethmeier, spokesman for the American Insurance Association, said in a Reuters report. The Independent Insurance Agents and Brokers of America, also known as Big “I”, issued a statement of support for the move. “The continued short term extensions of the NFIP have caused considerable confusion in the marketplace,” said Charles Symington, senior vice president of government affairs for the Big “I”. “We strongly support the Financial Services Committee’s efforts to pass a long term extension of this important program and hope that the full House and Senate will consider this legislation promptly.” 

A huge insurance company in California is accused of breaking state laws and could face big fines. The state Department of Insurance released a report Monday according to San Francisco Chronicle  that says that Mercury Insurance Group, the state’s third largest insurer overcharged customers and also denied some people coverage.

Mercury company officials released a statement maintaining their innocence. The company said in the statement that it “takes very seriously our responsibilities to consumers and our customers” adding, “We don’t engage in practices that would overcharge our customers.”

The report identifies 35 alleged violations in a span of about three months between March and May 2007. The violations include instances where Mercury supposedly barred people from coverage if they worked in certain jobs including bartenders, painters, cocktail waitresses or artists. Also, the report says that homeowners insurance premiums weren’t applied on time, resulting in overcharges for the insured. According to reports, Mercury has ten days to correct the violations and otherwise faces a $5,000 fine for each violation. This isn’t the first time Mercury has faced fines. In 2008 the company paid $200,000 in fines and in 2006, they paid $300,000 for violating insurance laws, according to Insurance Department officials.

An earthquake struck California earlier this week with the epicenter shaking rural Baja California. While the 7.2 magnitude did some damage, it was not widespread. However, the natural disaster did bring to light that few Californians carry earthquake insurance. In fact, according to KPBS, only 12% of California homeowners have earthquake insurance. “California homeowners, in this most recent event, basically dodged the bullet,” said Glenn Pomeroy on KPBS. Pomeroy is the CEO of the California Earthquake Authority, which is a state-run non-profit that provides 70% of the earthquake insurance in California. “Let’s say the 7.2 that happened on Sunday happened under Los Angeles,” Pomeroy said. “We would see massive destruction. Homes destroyed. Infrastructure badly damaged.”

In 1994, following the costly Northridge Earthquake, California leaders created the earthquake authority which now has the ability to cover billions of dollars with of earthquake damage claims. But in order to receive it, homeowners must purchase policies and the majority do not. Think you’re covered by your homeowner’s policy? Not so says Pomeroy. Most do not cover earthquake damage. “Keep in mind that FEMA grants usually top out at about $30,000,” Pete Moraga told KPBS, a spokesman for the insurance industry in California. “And if you get or qualify for a low-interest loan, it’s still a loan and you’re going to have to pay it back.”

So how much can an earthquake insurance policy cost? Experts say if your house would cost $200,000 to replace, you would have to pay $30,000 out of pocket before you get any insurance money. That means the insurance often only covers cases of extreme damage, unlike what occurred as a result of the recent California earthquake. The annual cost for a policy can be as much as $1,000 a year in places that are more likely to get hit. But experts say other locations can cost just a few hundred dollars a year. However, some believe homeowners are better off putting that money towards improving their current home rather than buying policies. According to Pat Abbott, professor at San Diego State,”For most people they are better off spending even a few thousands of dollars strengthening their existing homes, and remove problems they have, at a cost less than the deductible on their insurance policy anyway.”

Forget the economy or tough credit– if you’re selling a home in a flood zone and you need flood insurance in order to close on the purchase, you’ll have to wait. Congress wasn’t able to agree on terms for extending the National Flood Insurance Program before going to recess. That means NFIP can not issue or renew policies as of March 28. While existing policies aren’t impacted, it means sales of homes in flood prone areas are forced to tread water.

This delay has happened two other times in recent months because of political and funding delays. “I’m for continuing vital programs like flood insurance and I think we should use common sense and extend this necessary program without further increasing the federal debt,” said Sen. David Vitter to Houma Today, R-La. “Louisianians, Americans get this. Why can’t Congress?”

Congress will take up the legislation on April 12 when it returns to session. Standard homeowners insurance policies don’t cover flooding which is why the flood insurance program was created in 1968. It offers coverage from floods caused by hurricanes, overflow of rivers or lakes, rain storms, mudslides and snow melt.

It’s not always fun to prepare for the worst, but sometimes it’s the best way to go. What if your house burns down, a burglar breaks in or a flood destroys everything in your basement. Getting money from the insurance company to replace the damage will be much easier if you have a home inventory. Creating a home inventory for insurance purposes doesn’t have to be complicated, but when the worst happens you’ll be glad you did. Here are a few simple steps for creating a home inventory.

Find Help: There are plenty of resources out there that will help you create your home inventory. Check out downloadable inventory sheets like this one from freedownloadscenter.com. Here is another 15-page home inventory PDF that will guide you through the process. You could also try this free online version from KnowYourStuff.org. While the software is free, storing it will cost you $15 a year.

Grab Your Camera: Take pictures of your valuables like TVs, jewelry and antiques. If items have serial numbers, make sure you take photos of those as well. Take close up shots of identifying markers that would help law enforcement officials know that something belongs to you. You could also just shoot a video of your home for a room-by-room record of your possessions.

Store It: Common sense will tell you it’s not a great idea to store your home inventory in your home because as your home goes up in flames, so will all of your hard work. Find a way to store your data online or in a safe deposit box.

Update Regularly: Chances are you’re buying new stuff regularly. Make sure your home inventory is updated as you invest in new belongings. Pick a date every year or twice a year and put it on  your calendar. That way you’ll be ready when the worst happens.

Getting the most out of insurance policies means more than just getting the best deal. You need to maintain the coverage levels that you need while seeking out good prices on policies.

There are many factors that can influence your homeowners insurance rates, and most of them fall into a few general categories. When you are buying a home, you will want to think ahead of time about how much that home will cost to insure.

Making the most of homeowners insurance takes work. Choosing the right homeowners insurance policy is only one of the steps you have to take.

You wouldn’t think that your dog would be such a major consideration when buying homeowners insurance, but it can be. Your dog, and its breed specifically, can affect your insurance premiums just as surely as the age of your house can. You want to go into this situation fully informed of the weight that your dog can carry in your insurance company’s determination of your rates and how you should approach this matter as a whole.

In a new development, various state insurance regulators have presented formal accusations that the Texas Windstorm Insurance Association is guilty of carrying on operations using deceptive and unfair practices.

Flood insurance is pretty self-explanatory, but who needs it? The answer may surprise you because the answer is almost everyone. Are you aware that flooding is the most expensive natural disaster than can happen to your home?

Saving on homeowner’s insurance begins with shopping around and raising your deductibles, but if you stop there then you may be missing out on savings. Your homeowner’s insurance protects your home, but who protects you from the sometimes high cost of insurance premiums? The truth is that it can be done, but you have to do it yourself. Here are some unique ways that you can take matters into your own hands and save on homeowner’s insurance.

It seems that Illinois Insurance Companies have found reasons to raise the rates on coverage for millions of that state’s residents.

If you are a homeowner insured by Allstate Corp., you can expect to pay up to 27.5% more on your property insurance. Allstate is just one of many homeowner insurance companies that have recently boosted Illinois rates.

The Property Casualty Insurers Association of America (PCI) is asking Congress to take a cautious approach to the financial reforms outlined in the U.S. Treasury’s proposal. PCI is concerned with addressing all of the potential problem areas and avoiding the consequences that may not have been intended by the new policy.

Taking care of your finances is a very important aspect of maintaining a good home for a beloved family. However, it is also important to know how to respect your home as well.

A meeting among lawmakers in Florida this week will consider several questions related to insurance that may have a profound effect upon the future of property owners throughout the state.

While most people have automotive insurance as a necessity due to state laws, they often don’t consider the other forms of insurance out there. Life insurance, health insurance, and more each provide something that can benefit people in ways they don’t recognize, but perhaps the one form of insurance that can truly make a difference for a person’s or family’s quality of life is home insurance.

People who own condominiums realize that their condo association is in charge of supplying condo insurance coverage. Some people have a hard time understanding that if they want to protect their personal property and have coverage that will cover whatever the condo association’s insurance does not, they must purchase a separate, personal policy in addition to the one already supplied.

Ben Bernanke, chairman of the Federal Reserve Board, spoke in favor of the Fed’s determination not to raise US interest rates during a yearly meeting of the Kansas City Federal Reserve Bank earlier today.

The economic troubles that have been plaguing the US since 2007 haven’t ended yet, claimed Bernanke. Thus, the Federal Reserve Bank is unlikely to wish the US prime rate to rise above 2% during the next few months.

With so many financial obligations that must be met by the average person, it is not surprising that many fail to meet one or more of these obligations.  If you fail to pay your mortgage payment, there can be serious consequences not the least of which is potentially losing your house.  What are some reasons? 

Intuitively, it would seem that people buy home insurance at all on the presupposition that eventually they will have to make a claim. That is the only way insurance makes sense at all. Aside from the fact that it’s often required by law, why pay the premiums if you don’t think you’ll ever need to collect?

Given this common-sense assumption, it can seem unfair that filing multiple claims with your home or auto insurance provider–especially certain types of claims–can make your rates go up. Certain kinds of claims cause your insurer to see you as a liability. After filing many claims, you might find that not only have your rates increased, but your coverage has diminished. What’s worse, other insurers might become more hesitant to offer you new coverage.

Have you ever wondered exactly how the cost of your home insurance is figured? What aspects are used to figure the amount? Is there some sort of complicated formula that the agents follow? You can learn about the aspects that influence the price you are paying for your home insurance, and can actually use this information to lower your premium rates. Once you know how to think like an insurance agent when calculating the price of a policy, you will be able to determine just how much of a risk an insurance company would deem you and come very close to the actual figure of the price you would have to pay.

The American housing crisis shows few signs of abating. The National Association of Realtors released figures earlier today that show Americans are able resell fewer and fewer homes than ever before.

Over the course of 2008, the number of non-new one-family homes sold across America has decreased by 15.5%. Since 2005, the highest point of the housing bubble, that figure has fallen by 33%. During the month of June, that number had decreased by 2.6%, a very high loss for only one month. If the June rate of US homes sold continued for over a period of one year, it would amount to 4.86 million non-new homes sold–the lowest number of non-new homes sold in ten years.